Preview

Pods: the Evolution of Small Busienss

Good Essays
Open Document
Open Document
1345 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Pods: the Evolution of Small Busienss
PODS: The Evolution of a Small Business
Small businesses are very important to the United State economy because 65 percent of new jobs over the past 17 years come from small business (Unites States). Everyone wants to own his or her own business, but having a good idea to start a business is not easy task; however, Peter Warhurst is one of the most successful entrepreneurs who dared to start his business with his three partners: Roy Courtney, David Revelia and Bill Ash. They were once firefighters who originated the idea of storing people’s property in mobile storage containers which could hold property when something happened to people’s houses. The company began in Clearwater, Florida, in 1997 with the name PODS, which stands for Portable on Demand Storage. PODS offered on-site mobile storage or picked up property and stored it in its warehouse (Portable on demand storage). PODS began with 346 containers; in 2004, after six year start business, PODS has over 22,000 storage units, expanded to 3,200 cities nationwide (Hundley). Starting an enterprise is not easy, the entrepreneur needs to know the advantages and disadvantages each of the forms of business ownership, some of questions to evaluate his capacity to run the business, and the business life cycle.
Choosing a form of business is very important for an entrepreneur because the choice can make an extremely large difference in long-term success. “The form is fundamental to the way the business operates; how it is taxed; what liability its owners have; how expenses, compensation and benefits are treated; and the problems that the business owner may encounter” (Forms of Business Organization 4) Business in the Unites States can be organized in one of three basic legal forms: sole proprietorship, partnership, and corporation; each one has its own advantages and disadvantage which help owners understand the unique problems facing in his business prospects. First, sole proprietorship is a business owned by one

You May Also Find These Documents Helpful

  • Good Essays

    HCS 567 Week 3

    • 721 Words
    • 3 Pages

    The most prevalent organizational type is the sole proprietorship. Sole proprietorship is usually found among the smaller organizations. It involves one person and in many cases the person and the business are synonymous (Barringer & Ireland, 2010). The sole proprietorship is the low cost alternative in both start up and in maintaining costs. They usually only require a business permit in order to operate. However, the sole proprietorship opens the owner up to increase legal liabilities as the income is reported as personal income and thus usually encompasses the owner’s personal assets. Not only does this type of organization have limited resale value. The sole proprietorship is also noted to have significantly higher hazard rates but also have lower survival rates nationally (Luo & Mann, 2011).…

    • 721 Words
    • 3 Pages
    Good Essays
  • Good Essays

    A Sole Proprietorship is ideal for an individual that wishes to keep all of the business controls to the individual, for the good and the bad of the business. The individual is legally responsible; there is no protection for the business owner.   Liability – The owner is completely liable for all legal actions and can be sued directly. Income Taxes – The Sole Proprietor is a highly taxed form of business, for the individual, with few tax breaks and fewer deductions allowed when comparing other business types or formations. Business income is taxed only one time and is reported on a personal tax form. Washington State, where I live, has no state income tax but the proprietor must still pay Federal income tax on the profits. Continuity/Longevity – The business with a sole proprietor can run as long or as short as desired by the business owner. Death is where the business would naturally end, unless prior arrangements were made to transfer ownership to another individual. Control – The owner (individual) is in complete control of the business direction and choices. Profit Retention –The profit is retained by the owner, assuming all bills and employees are paid, the money left over can be considered profit for the owner. Location – The location of the Sole Proprietorship should be wherever the business owner/business is located. Expansion to multiple states is less likely to occur, though if it happens the owner just needs to create a new Doing Business As (DBA) in the new state of choice. Burden/Convenience – The burden and convenience are the challenges and benefits of being a business owner, being the sole responsible party for success and failure alike, no external requirements like meetings or other regulations are required though.…

    • 2311 Words
    • 10 Pages
    Good Essays
  • Good Essays

    Task 310-1.2-01-06

    • 1304 Words
    • 6 Pages

    Sole proprietorship is the most common form of business, instating this proprietorships are operated and owned by one person. The reason proprietorship is so common is because this form of business is easy. Many individuals that form this type of business are also known as an entrepreneur. The owner of a sole proprietorship has unlimited liability. For example the individual who wanted to open up this type of business want to open a landscaping company. This business can easily be started and, the owner will have complete control over the entire business. This business requires little to no capital to operate, however this business requires clientele and advertising to be successful. Sole proprietorship is the most adequate form of business for this type of operation.…

    • 1304 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Lit Task 1

    • 1732 Words
    • 7 Pages

    Sole Proprietorship: The most common form of business in the United States. A business operating under Sole Proprietorship is run only by the owner of the company. All decisions are made solely by the owner without the need to have legal consultation. The business only needs to register the business name with the government if the owner choses to use a business name rather than his/her personal name.…

    • 1732 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Lit1 Task 310.1.2-01-06

    • 2847 Words
    • 12 Pages

    Sole Proprietorship Sole proprietorship is the most common form of business in the United States. It is a relatively simple way for an individual to start a business since legal costs and business requirements are minimal, and the owner has complete control over the business. Though a sole proprietor is not responsible for any corporate tax payments, the owner is responsible for taxes incurred on the income generated from the business as part of his or her personal income tax payments, and personally shoulders any other risks or obligations. A sole proprietor may also choose to file their business under a fictitious business name or a DBA (doing business as), allowing him or her to operate and market the business under a more typical business name rather than their personal name. However, the business is not considered a separate entity and the sole proprietor is still personally liable for all obligations incurred by the business. Characteristics to keep in mind about Sole Proprietorship 1. Liability There is a lack of protection from personal liabilities, meaning that the personal assets of a sole proprietor is at risk in the event of litigation. If the business fails, any creditor can go after the business assets of the business as well as the personal assets of the owner. 2. Income Taxes The business owner is responsible for paying taxes on all profits generated by the business as personal income and does not need to do a separate corporate tax filing. The proprietor can also reduce his or her taxable income by charging off business expenses. 3. Longevity or continuity of the organization Since finding a source of funding is one of the biggest challenges a sole proprietor may face, it hinders the business to have longevity or continuity. In most cases, the funding comes from the proprietor's limited personal assets which can inhibit the future growth of the business. 4. Control The sole proprietor has full control of all the business decisions and can expand,…

    • 2847 Words
    • 12 Pages
    Better Essays
  • Satisfactory Essays

    Fins1613 Final Exam Notes

    • 398 Words
    • 2 Pages

    Advantages: ownership can be transferred easily, unlimited life, limited liability, easy to raise large sums of money.…

    • 398 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Fin515 Week 1 Homework

    • 1441 Words
    • 6 Pages

    Companies are fall into one of three categories; a proprietorship or sole proprietorship is a business owned by one individual. A partnership exists when two or more persons associate to conduct a business. In contrast, a corporation is a legal entity created by a state. In our current economic system corporation share some of the same benefits as individuals; although Sarbanes Oxley law has made some significant changes, corporations are still viewed as separate and distinct from its owners and managers. In a limited partnership, limited partners’ liabilities, investment returns and control are limited, while general partners have unlimited liability company (LLC), combines the limited liability advantage of a corporation with tax advantage of a corporation with tax advantages of a partnership. A professional corporation (PC), known is some states as a professional association (PA), has most of the benefits of incorporation but the participants are not relieved of professional (malpractice) liability.…

    • 1441 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Ratio Analysis Memo

    • 1026 Words
    • 5 Pages

    Before starting a new business, several decisions such as its legal structure must be made first. Five basic entity types exist in which to structure a business. These types consist of sole proprietorships, partnerships, limited liability companies (LLC), C corporations, and S corporations. When determining the type of structure to use, comparison of different factors such as liability to the owners, taxation, and management controls must be conducted.…

    • 1026 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Businesses can originate or expand into several types of entities. General or limited Partnership, Sole Proprietorship, Corporation, Limited Liability Company (LLC), Limited Liability Partnership (LLP) and franchises. Each style has its own advantages and disadvantages concerning liability, government laws and regulations, and taxation. The businesses discussed in this paper vary in operating styles and each must follow different guidelines. The paper will evaluate two hypothetical businesses and the organizational structure that presents the best choice for each business with consideration for control, taxation, and liability issues. Laws, regulations, and risks each business must face will be addressed. The paper will also include a discussion of a hypothetical situation in which a hiring manager must choose an applicant while considering laws, regulations, and the risks against which the business must protect itself when making the decision.…

    • 1270 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Scarborough, N. M. (2014). Essentials of Entrepreneurship and Small Business Management (7th ed.). Retrieved from The University of Phoenix eBook Collection database.…

    • 1173 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Business Sample Questions

    • 1643 Words
    • 7 Pages

    Compare and contrast the following forms of business organization: sole proprietorship, general partnership, limited partnership, limited liability company, and corporation as to ease of formation, liability of owners, management, and tax implications.…

    • 1643 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Sole proprietors own an unincorporated business on their own and this type of business constitutes the most predominant form of business enterprise in the United States (Kubasek, et al., 2012, p. 758). Advantages of a sole proprietor include complete…

    • 1470 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    University Of Phoenix

    • 655 Words
    • 3 Pages

    There are three types of business structures, partnership, sole proprietorship and a general corporation. Each structure has its disadvantages and advantages but the key is doing the research to determine which business structure will be suitable for your business venture. Many people may not be interested in running a small business so a sole proprietorship may not be the favorite structure to start with, or maybe when starting a business you may want your company to start small but eventually run as a corporation. Whatever the case may be one must understand the advantages and disadvantages of each structure.…

    • 655 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Tttttttt

    • 404 Words
    • 2 Pages

    * When starting a business one of the first steps to determine is what form of ownership will your business be. There are three different types of ownership, the first one being the most simplest and popular; sole proprietorship. This form of ownership is where one person has the overall say on what goes on in the company as far as financial and business decisions. The next is a partnership in which two or more people co-own a business for the purpose of making a profit. In this form of ownership there is a big factor of trust that has to be there between the two business owners. The finally for of ownership is a corporation which is the most complex of the three forms. A corporation is an artificial legal entity created by the state that can sue or be sued…

    • 404 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    wgu mgc1

    • 2088 Words
    • 9 Pages

    Sole proprietorships are the most common way of doing business in the United States. Legally, there is no difference or distinction between the owner and the business. The legal name of the business is the owner’s name, but owners may carry on business operations under a fictitious name by filing a d.b.a. filing. Sole proprietors enjoy ease of start-up, autonomy, and flexibility in managing their business operations. On the downside, they have to pay ordinary income tax on their business profits, cannot bring in partners, may have a hard time raising working capital, and have unlimited liability for business debts.…

    • 2088 Words
    • 9 Pages
    Good Essays